Ted Garrison Construction Industry Blog

Don’t Waste Your Company’s Human Potential

Thu, 19 Jan 2012 08:00:00 -0700

Lean thinkers can create a long list of examples of waste, but maybe the worst example is the wasting of people’s potential. The reason it’s the worst is it not only fails to take advantage of the person’s current potential, but it can destroy the person’s spirit and future potential. When people feel like no one cares about their opinion, they tend to develop an attitude of why should I care? In a NCS Radio interview, George Trachilis,...

Creating Good Jobs

Tue, 17 Jan 2012 08:00:00 -0700

Jim Clifton, Chairman of Gallup, wrote an interesting book entitled The Coming Jobs War . This is a book that everyone should read. It explains why creating good quality jobs are at the heart of our nation’s economy and our individual economic security. The construction industry has complained for decades about the difficulty of hiring and retaining qualified people. While the recession has masked that issue in the short-term, attracting people to the industry is...

You Need to Fund the Projects

Thu, 12 Jan 2012 08:00:00 -0700

With the money crunch for public projects, I have advocated that a great solution is more private-public-partnerships. The reason is there are huge amounts of a private capital seeking places to invest. Private-public-partnerships are a way to tap that resource while at the same time decrease the strain on federal, state, and local government coffers. It is important that we find methods to finance our infrastructure. Not investing in infrastructure increases costs to both business and individuals. Further, a...

Think Lean

Tue, 10 Jan 2012 08:00:00 -0700

The construction industry needs to think LEAN. The industry should stop thinking in terms of either LEAN manufacturing or LEAN construction. Obviously, LEAN thinking it is applied differently in manufacturing than in construction, but the fundamentals are the same. However, even contractors may need to think in terms of LEAN manufacturing. Read on for three situations where the contractor could use LEAN ...

Fire All Your Project Managers

Tue, 03 Jan 2012 08:00:00 -0700

Why do I suggest your fire your project managers? The reason is I’m not talking about the people but the type of people . I hate the term project manager because I believe it improperly defines the role of running a project. The title should be project leader . I realize that a title is only a name, but in this case title often implies certain attitudes and beliefs that are not beneficial...

Residential Construction Needs a New Perspective

Thu, 15 Dec 2011 08:00:00 -0700

The residential construction industry is in a depression. From a peak employment in 2005 of 1,000,000 to a current level of only 560,000 we have a 46 percent loss. What is hidden in these figures is the fact that many current employees are actually doing repairs and maintenance. The percentage of jobs lost in new construction is even higher. ...

Don’t Trust Contractors!

Tue, 13 Dec 2011 08:00:00 -0700

The biggest challenge to convincing people to use design-build or other integrated project delivery methods is that owners often don’t trust contractors. So saying that you should trust contractors gets a lot of resistance. After all when we live in a society that has pre-nuptial agreements because the two new spouses don’t trust each other, to asking an owner to trust a contractor does seem a tough sell. ...

Think Like a Consultant

Tue, 06 Dec 2011 08:00:00 -0700

I often tease contractors that they should get out of the building business. I’m not suggesting they should stop building buildings, because that’s what they do. However, their real business is how they provide value to clients. That’s achieved by helping their clients and prospects solve problems. For contractors this means solving problems that require construction, but the value is added in helping to determine what is built. ...

Three Strategies to Improve Profitability

Thu, 01 Dec 2011 08:00:00 -0700

Studies find that contractors who are considered top performers by clients are more profitable. What makes you a high performer in the eyes of the client? Below are three things you can do to improve not only your true performance, but your performance from the client’s perspective: Put out fires before they start Clients have enough problems dealing with their own business; they don’t need problems on their capital construction projects. Most clients just want...

Can’t Fix New Problems with Old Ideas

Tue, 29 Nov 2011 08:00:00 -0700

Albert Einstein said, “We can’t solve problems by using the same kind of thinking we used when we created them.” One of the biggest problems we have today is the polarization of ideas. In other words, it needs to be one way or the other. For example, we are either in favor of a robust economy, or the environment, but not both. Or we believe we need to reduce government spending, or we favor the government investing heavily in...

Time for Construction Industry Leaders to Step Up!

Tue, 22 Nov 2011 08:00:00 -0700

The dysfunctional behavior by the federal government as demonstrated by their inability to address the budget crisis (again) reinforces the message that the construction industry needs to stop waiting for the government to help stimulate it. There is no leadership in Washington as they keep shooting the nation’s economy in the foot. Plaxico Burress was sent to jail for shooting himself in the leg, while maybe it’s not illegal to be incompetent – it appears we need new leadership....

Government Can’t Fix Housing Crisis

Thu, 17 Nov 2011 08:00:00 -0700

There are those that keep demanding the government do something about the housing crisis. Unfortunately, they can’t do anything or at least can’t do anything that will accomplish much. The fact is that government’s policies that tried to make it easier for everyone to have a house were significant factors in the housing collapse. By creating a huge demand for housing, it drove housing prices through the roof. For example, in 2005 the median priced house in the United...

Of Course It’s About the Money

Tue, 15 Nov 2011 08:00:00 -0700

I received an email last week from someone who said that I was naïve not to believe that the only thing customers care about is price. Of course, there are those that only care about price. If you do a survey at Wal-Mart, I’m sure most people will focus on price. However, if you do the same survey in Neiman Marcus, I doubt the primary concern is price. Studies have found that about 27 percent of consumers only...

The Answer to Better Sustainability is Collaboration

Thu, 10 Nov 2011 08:00:00 -0700

Construction Week’s Conference on Sustainability in the Middle East in Abu Dhabi, United Arabs Emirates that I attended last had a major theme that collaboration as in integrated project delivery or integrated delivery process. This view was expressed by contractors, consultants, designers, and even government officials. The message was loud and clear, the only way to maximize results is through a concerted effort of collaboration from all the experts. Sustainability is a complex issue involving many...

Who Says Sustainability Costs More?

Tue, 08 Nov 2011 08:00:00 -0700

I just attended Construction Week’s Conference on Sustainability in the Middle East in Abu Dhabi, United Arabs Emirates. The opening keynote was delivered by Jody Andrews, the Director of Capital District Development in Abu Dhabi. His closing comment changes the paradigm on sustainability: “If it isn’t cheaper, it’s not sustainable.” There were several overriding themes throughout the conference, but one critical theme is the need to challenge the way we do everything. In other words, how can...

Prospects Don’t Just Care About Price

Wed, 02 Nov 2011 08:00:00 -0700

I know a lot of people want to disagree with the title of this article, but it’s true. Of course, some do, but studies indicate that number is only about 27 percent of consumers. In contrast, 17 percent don’t ever care about price. Wouldn’t that be nice if everyone was like that? However, this group presents a problem because they probably already have their contractors so you never even find out they had a project until after it’s started....

The Construction Industry Faces Great Opportunities

Mon, 31 Oct 2011 08:00:00 -0700

Talking to people in the construction industry these days is a rather somber experience, but cheer up! Look at the bright side of things. “Man what an opportunity, what a time in U.S. history. Problems always open themselves up to opportunity. We got to be looking at those,” declares Dr. Barry Asmus, the Senior Economist at the National Center for Policy Analysis, on a recent NCS Radio interview. ( www.jackstreet.com/jackstreet/WCON.Asmus.cfm ) Since the current industry wide recession is...

Construction Must Lower Costs

Wed, 26 Oct 2011 08:00:00 -0700

Note: the title says lower costs, not lower price. Unfortunately, too often people in the construction industry think that lower cost means lowering their price and respond, “No way!” What I’m talking about is eliminating all the waste in the system which would reduce project costs. The reality is waste benefits no one and actually hurts everyone even if you think you can pass the cost on to the customer. Henry Ford wrote back in 1926 that the...

The Highway Trust Fund is Not the Politician’s Piggy Bank

Mon, 24 Oct 2011 08:00:00 -0700

The Highway Trust fund was set up to provide funding for America’s roads and bridges. It has been in place for over a half a century and overall it has done a fine job of building our highway system. However, once the politicians started dipping into the “highway” fund for other pet projects the finances of the fund were placed in jeopardy. Now it is basically broke like the rest of the government. In fact, it recently had...

Turning Things Around

Wed, 19 Oct 2011 08:00:00 -0700

Destruction is easier than construction. An airplane is a complex piece of engineering, but it is pretty simply to bring one down. It’s easy to be negative and argue about what isn’t working. It’s much harder to focus on what will work. For one thing it doesn’t take any work to complain, but it actually takes work to make things happen. To get the construction industry back on track we need to start focusing on what will work. This turnaround...

Train the Workers!

Mon, 17 Oct 2011 08:00:00 -0700

I just read an article that described how manufacturing jobs are going unfilled because of a lack of skilled workers despite the high unemployment. This was a problem for the construction industry before the current slowdown and a problem that will return when the industry picks up. Unfortunately, too many employers are reluctant to invest in training their workers. Worse, some actually believe hiring poorly trained workers at lower wages is a good idea. This is a mistake; in the...

Remove the Regulations and Red Tape on Infrastructure Projects

Thu, 13 Oct 2011 08:00:00 -0700

The White House offered to remove the obstacles to get a fast start on several projects in an effort to promote its jobs bill. While removing those obstacles on the selected projects is moving in the right direction it is not enough. When it takes years to obtain permits for projects it adds substantial delays to the projects as well as additional cost. As a taxpayer I’m tired of seeing our infrastructure costs increased because of bureaucratic red tape at...

Should You Acquire Your Competitor?

Tue, 11 Oct 2011 08:00:00 -0700

In the middle of what could be called a depression in the construction industry, the idea of acquiring your competitor may seem a little crazy. However, consider that huge fortunes have been made during recessions by doing just that. Andrew Carnegie bought up all the steel mills during the 1890’s and when that recession ended his fortune was immense. The reasons for buying out a competitor are the same during a recession or a boom period. In fact, the opportunities...

Protect the Client

Thu, 29 Sep 2011 08:00:00 -0700

My favorite definition of client is “ someone under the protection of .” It’s powerful, because it changes the paradigm in an industry that is too often antagonistic. If you think this approach is too consumer focused, consider the following: How long would you keep your attorney if you didn’t think he was protecting you? How about your financial planner? How about your CPA? How about your doctor? So why should someone keep his contractor if he doesn’t...

Reviving the Housing Industry

Tue, 27 Sep 2011 08:00:00 -0700

The housing industry has experienced a depression the last few years. This is certainly not good for those in the housing industry, but it’s also not good for the nation. The housing industry is one of the engines of our economy, so when it’s down our economy will struggle. Some look for quick fixes, but they never really help. They provide a slight jump in housing starts, but the numbers quickly return to prior levels or even worse...

Scrap the Low-Bid Award Process

Thu, 22 Sep 2011 08:00:00 -0700

Everyone would love to have a project completed on time and have the lowest capital costs, the lowest life-cycle costs and high performance. Unfortunately, the low-bid award system doesn’t do that. In fact, that approach has created an environment where the construction industry is the only industry that hasn’t increased its productivity in more than 50 years. Worse, it has been estimated that there is between 30 and 40 percent waste in the construction process, maybe even more. ...

Infrastructure Bank

Tue, 20 Sep 2011 08:00:00 -0700

We are in the midst of a perfect storm. The government is basically broke at all levels. The infrastructure demands are nearly $2.5 trillion based on ASCE estimates. The option to do nothing doesn’t exist as it cost the average person more than $800 a year just sitting in traffic or repairs to his car from road damage. That one example illustrates the impacts of a declining infrastructure. All areas of infrastructure significantly affect everyone’s costs and our nation’s...

Partnering Isn’t a Four-Letter Word

Thu, 15 Sep 2011 08:00:00 -0700

I’m aware the term partnering within the construction industry has a bad connotation. In contrast, other industries experience significant benefits from partnering. The problem is the construction industry has used the term to define the wrong function. In construction, partnering typically refers to the demand-side of the supply chain. The benefits of partnering in this context have been limited. In fact, it has actually created barriers to true improvement. ...

Innovation: Developing a Competitive Advantage

Tue, 13 Sep 2011 08:00:00 -0700

Associate professor of Construction Engineering at Oregon State University John Gambatese stated in an NCS interview, “In general, I think the construction industry has a fear of change. It’s a bit slow to respond and slow to change and perhaps has a risk of failure that sometimes drives their decision making.” Warren Bennis wrote, “The leaders I talked with are far from believing that mistakes are ‘bad.’ They not only believe in the necessity of mistakes, they see...

Communication, Collaboration and Mutual Respect

Thu, 08 Sep 2011 20:00:00 -0700

One of my radio guests, Harvard professor Rosabeth Moss Kanter, wrote an interesting article several years ago titled “Leadership and the Psychology of Turnarounds.” The article focused on what it takes to turn around an individual company, but it seems fair to conclude the recommendations could be applied to an industry or nation. Kanter identified several behaviors within an organization in need of a turnaround, including secrecy, blame, isolation, avoidance, passivity and a feeling of helplessness. These traits are often...

Integrated Project Delivery

Tue, 06 Sep 2011 20:00:00 -0700

It’s time for the construction to enter the 21st century. The fact that it might be forced to skip the 20th century is irrelevant. This may seem brash, but in an NCS interview, Doug Woods, CEO and founder of DPR Construction, stated the construction industry has changed very little in the way it has done business in more than a hundred years. Professor John Kotter in his book Sense of Urgency said the number one obstacle to...

Get Involved

Thu, 01 Sep 2011 00:00:00 -0700

In a recent NCS radio interview with Steve Forbes, I asked, “What advice would you offer today’s construction executive for both short and long term.” He responded, “I hate to do this, but one of things they have to do in addition to attending to their business, which they know, is start lobbying.” He said construction leaders must make sure their representatives understand what they need to move ahead with projects without waiting for an appropriations process and employing...

Jump-Starting the Construction Industry

Tue, 30 Aug 2011 10:30:00 -0700

The American Society of Civil Engineers estimates the infrastructure backlog is approaching $2.5 trillion. Yet with deficits that are out of control, little is being done to resolve the problem. Face it; the federal government is broke. State governments are broke. City governments are broke. They can’t just print money because that will be worse in the long run. ...

Sell Solutions Not Services

Thu, 25 Aug 2011 00:00:00 -0700

The employment figures for June indicate that the construction industry lost jobs again, which reminds us of the tough times we are facing. However, too many contractors continue to attempt to compete solely on price. Oh, I know sometimes you have no choice, but the point is contractors need to find places where they can offer their expertise instead of just competing as a commodity. In other words, they need a strategy to use their knowledge and expertise...